beginning of july of 2011. the stock now up nearly 98% year to date. yet, as you noted, with that call, meredith whitney saying she expects that you'll see a strong catalyst in the first quarter that the fed will likely allow some of the big banks to deploy that capital. she expects bank of america could kdruple its dividend. that certainly is going to be attractive to some investors. back to you. >> bertha, thank you. that will do it for us. thank you for being with me. follow me on twitter and google plus. have a great night. but wait. here's "fast money." with every meeting between the president and boehner -- >> meeting lasted 45 minutes between the speaker and the president. progress in these negotiations is a very moving target right now. >> byers start coming back into the market. >> it looks like, at this point, the senate is going to have to come back on december 26th, the day after christmas, to take up

among other pieces of legislation, the fiscal cliff solution. >> and if a deal is hatched, it could be the best santa claus rally ever. >> listen, at 12 times next year, with these interest rate us, with this fed, yeah, of course it's cheap. >> "fast money" on the cliff that saved christmas, right now. live from the nasdaq market site in new york city's times square, i'm melissa lee. here are tonight's top three trades. first, cliff dwellers. is the mortgage deduction in play? we're handicapping the fallout that could hit the housing stocks. and some of the financials have doubled this year. should you bet that the rally will continue? plus, apple of their eye. the traders pick five stocks that are better bets than apple right now. but first, let's get to our top story. the dow jumping 100 points. so, we ask, were you a buyer or a seller today? pete, what do you say? >> i was a buying. and it was because of the fact, over the last week or so, we've

seen nothing but upside buying in the banking stocks, ever sense december 5th broke above that 50-day moving average. last day, week, 475,000 calls at 200,000 puts. it's telling me right now, financials are going higher. we alaskaic active aactivity at stanley, goldman sachs. >> you believe the whole market will be pushed higher because of that move? >> absolutely. i think it's the financials lifting us. >> tim? >> at the risk of agreeing with pete, i'm a buyer -- >> you're smart. >> it's macro reasons. this is a reason to be excited. this is a momentum shift. there's reasons and we know this, we're going to talk about the election later. but this tells me people are taking risk. i spoke about it in the morning meeting, if we get over 200, 175 in the ten-year on the yield, it's a very bullish sign. we've been there four times in the last four months. i want to see this break higher

before i'm convinced. it's been a great time to short stocks, as well. >> i'll take the other side a little bit here of pete's call. the banks have been out of control here, you know, bank of america is up 22% from that november low. i think there's a lot of good news in these stocks right here. to the end of the day, when the rally felt a bit giddy, i bought some december quarterly puts in the qs near the money. and the nasdaq composite is really underperforming. it's down about 6% from the highs of the year. the s&p only down about 3%. i think there's going to be continued underperformance there. i want to focus on tech. >> but today, the nasdaq outperform and we had apple, a good tape, despite the downgrade from citi. >> apple looked pretty good. i thought it looked terrible for the last couple of weeks. but today bouncing back. what i would pick up on, what tim said about the bond yield. what i've been worried about is people taking money out of the bond market but not going into the stock market. just putting cash into their mattresses. today, you didn't see that.

tlt down over 1%. lqd down 39 cents and the money was going back into the stock market. that's a good sign. i was a buyer. >> one day a trend does not make. if you look at the flows for the month of november, the biggest flows into money market funds since december 2008. what was going on in the world then? it was chaos. >> we're starting to see people reach out and grab risk. what's surprising to me is that suddenly, the journal had an article which basically said the second half of 2013 is going to be very bullish. look, this is something, if you look at the global economy, you are getting that sign out of china. you are seeing that the biggest industrial exporting country in the world, germany, look at the autos, look at volkswagen, these guys are in multimonth highs and many cases, multiyear highs. this is telling you that the global economy is not dead. when you layer in, you know, kay schiller at six-month highs and the housing stocks doing what

they're doing, this shouldn't be a big surprise. >> we have japan with its election, stimulus is on the way there and the european data doesn't seem to be getting much worse. >> potentially europe looks like it's at least stabilized. if china has a soft landing, it's pretty hard to get bearish on the global economy when you have two of the major economies hopefully and looking like -- >> we are only a couple percent from the highs we made. what is it discounting? and just one other point, if you look at the bank stocks, the way they act here, if you look in europe, the euro stocks bank index is really flat here. for the last couple of months here and to me, you know, the u.s. banking index needs to see the confirmation of europe for this thing to go -- >> but look at what will happen if spain activates the omt. any bank that owns all those sovereign debt are going to fly in europe. that's what people are anticipating. you will get that buy-in. >> we saw the banks fly today. bank america, closing at a

52-week high. bertha's got the latest on that. bertha? >> yeah, it's had a really strong day, b of a, extending those gains right now to an 18-month high. it closed at the highs of the day there at $11 a share. whitney says despite the monster run in financials and b of a up, the big banks are better capitalized and poised to be able to deploy earnings more freely. the feds march c-car will serve as what she calls the near term catalyst. the fed should allow b of a more room to use its capital and she thinks the board could quadruple the dividend. she also had citi and discover financial. whitney will be on with maria to talk about that call tomorrow. >> thank you, bertha. when she speaks, especially when it comes to the bank stocks, the stocks do move. do you buy into this move higher? is that a monster run? on top of it, meredith whit nne

is saying, next year, they could be more free -- >> i buy into it for people that are looking for econocompanies are going to make money. but the call that suddenly these guys are not going to have to be worrying about their balance sheets and are going to return to their old ways, this is her main point. to give capital back to shareholders, that's cool. people like that. but to say that it's game on again, which i kind of am reading between the lines in her note and i don't think it's game on again. i don't think the fed, i don't think the government and i know we've got someone that wants to talk about that. >> expense rationalization is key here. scott nations on the options desk, where do you stand on this? >> i've been long bank of america for a long time. i loved the weakest of the big banks for a long time. i'm still on bank of america, $10 calls. probably time to spread those out. but both of these, bank of

america and citi have a long way to go, because they came down so hard. and they have giant franchises. so, it may be a situation where the weakest banks have really had their day. they're not going to stop. jpmorgan still the best name in the space. >> let's bring in chris whelan, a new firm, you were with tangent capital partners before. you probably stand exact opposite of meredith whitney. no? >> well, i think you were making exactly the right point. people don't understand that the game has changed. look at me. i've just gone to work for a large nonbank officer lender. we have a completely -- >> that sounds awful. i'm kidding. >> but looks this is the feature. we're sitting here two years from now talking about the top four money center banks, mortgages is not going to be the driver of volumes or earnings. when you talk about bank of america, you're going to be talking about a company with a bigger dividend and probably going to think about meryl lynch first.

now, think about what a radical change that is, if you've been following the stock for the last ten years and gain on sale for mortgages has been the number one driver of volumes. >> right. okay, but bank of america at $11, given these new circumstances, is it worth a bite here? >> it's worth a buy, if you go to the franchise value story, you like that story, and you think they're going to escape the worst scenario with the litigation, because the thing that's still hanging over the bank is put-back claims, other types of litigation and the u.s. government. you know, jpmorgan has this story, too, with bear stearns. it's not going to kill them, but it's going to be ugly. investors want to see a settlement or ugly. these banks are fighting it out and it could go on for years. >> so, is that a no? >> i think, to me, i would not be a buyer of any of the top banks other than u.s. bank, but i know people on the street who have put everything they've got in the bank of america and citi.

>> all right, let's go off on that. meredith talked about march 2013 being a catalyst date. as a trader over the next three months i'm going to be saying, which of these names do i want to be long and sell the news in march. which of them you think has the best chance of -- >> i don't agree with meredith's premise, because, yes, they may let me use a little bit more capital if i'm one of the top four, but i'm living in a world where instead of an 8% risk rate, i have 100% risk rate. many of the assets i would like to create in terms of generating revenue are going to be much more costly in terms of cap tam. i think these are going to go back to the way they were, which were dividend plays. when you get the book value, one and a quarter times book value, you have to start being defensive. >> liz warren scares me, too. when i think about what's going on in the house senate, the banking committee and where we have at least put banks under notice that they're not going to be allowed to charge the same fees, so, again, the interest

margin, you know, contraction is something that i don't see how we get out of that environment. >> we've got a nightmare thanks to elizabeth warren. you have -- >> glad i'm not the only one. >> annihilating the third party lending market. and then you have the settlem t settlement. banks now have an explicit duty of care to the borrower and the note holder. that's okay. if you do the right thing for the boar roar rrower, you are p going to take care of the investor, but the banks don't understand it. california is now a mine field for banks. you have to do judicial foreclosures in california after january 1. what does that mean? more cost. you've seen fannie and freddie starting to put higher servicing fees on problematic states like new york, connecticut, new jersey, where it is very hard to foreclose. if you were an investor, would you want to write a jumbo mortgage in, say, massachusetts, where you can't foreclose at all? this is a big problem for states

that have high value real estate, california, to northeast, because we still have a foreclosure problem and precisely because politicians talk about consumer protection, but they're actually hurting consumers because they can't get a mortgage. >> right, right. could be a game changer coming. chris, good to see you. >> happy new year to everybody. >> you, too. apple, it is time to move over. up next, our investors are naming five stocks that are better picks right now. and still to come, why a game changer could be in store for the copper trade. the come mod times king is here to shed light on what you need to know. stay tuned. tdd#: 1-800-345-2550 this morning, i'm going to trade in hong kong.

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as you know, apple dipped

below 500 bucks a share only to bounce back and finish higher. the stock, in the after hours session continues to move higher. but with america's most valuable company dropping 26% from its peak in september, we want to know which tech stocks are better bets than apple. tim? where do you go? >> probably would have expected me to say samsung. they have a little bit of apple in them. if you listen to the smartstone sales, all the challenge techs, let's go to baidu. this is a value play. they have a similar challenge to google. they have to convert on mobile. their user base is highly mobile in china. these guys have to prove to people they can compete in the same space that google is trying to but they dominant. they don't have any competitors out there and this s.e.c. investigation into the chinese internet names is overdone. this is a great place on the chart. momentum is with you. >> pete, you're going to tim's girl, actually. >> tim's old girl.

everybody's hated nokia. this stock was underneath $2 a share. i think this thing is fascinating. the 920 phone and the fact they actually have a contract with china mobile. 700 million subscribers, more than that. this company with the windows 8, i think there's a lot of different catalysts out there. we saw you unusual activity in this name. it was trading around $2. today, $4 a share. i think nokia's not going to beat up on apple, but if you want performance, that's the name to be in. >> gain market share at apple's expense? >> i think they can gain some market share. i don't know if it's at apple's expense, htc, whoever it is going after. when you add all of this together, i think this company has more upside. >> can i challenge pete? >> go ahead. >> this is an old girlfriend, man. she dominated the emerging market smartphone world in a place where it wasn't a smartphone, it was your basic handset. now the smartphones are getting to a price tonight -- i don't note they can compete.

and the lumia, they are trying to compete on the high end. it's a great phone. but i think it's a stock that really was probably beaten down -- >> i'll step in front of you on this. you're going emerging markets, i'm not wanting to go there. china, number one, u.s., number two, developing markets number three. >> you don't even care about the emerging markets. >> forget about that. that's where they threw the throw away phones. >> burner phones. >> burner phones. that's what they use -- >> underground world. >> exactly. boo beekers? >> well, follow that. i'm going to go with oracle. mobile consumption is really changing the game out there. domino's pizza gets almost half their worlders from mobile phones in this point in time. oracle has that whole data base, the back end you need to do this. it's cheap relative to itself. it's cheap in tech land, too. if it can get through 32 1/2 on a momentum basis --

>> you were buying to say that's how pete orders his two medium pizzas -- >> i don't think oracle's a tech stock. i think it's a fantastic call. this is a stock that people stay in, if only because they think they're going to get more every year. >> dan? >> here's one, just on friday with apple's weakness, qualcomm was down. i stepped in there and bought some call spreads. here's $100 billion market cap company with a quarter of that market cap in cash, no debt. they pay a 1.6% dividend yield. here's the kicker, though. these guys are expected to grow earnings next year 16%, sales, 23%. there are very few large cap tech companies with that sort of growth exposure and so, to me, you know, these guys get about single digit percent. >> 6% from apple. >> okay, so, they're very widely exposed. there's a lot of growth. in the developed markets and emerging markets. i think qualcomm is a great,

great pick for 2013. >> you know, along those lines, i look at that. look at arm holdings, too. this is a stock that's moved up fairly well and they really are the whole architecture behind this mobile competing. >> scott nations? >> rimm. i have been incredibly tough on them for a past couple of years and they have deserved it. but the stock has gotten a fire under it. one, they are going to introduce their new products at the end of january. and those products have gotten pretty good reviews. people like the interface. it's going to have a real keyboard, which makes sense for rimm. and they expect to have 100,000 apps available for these products when they introduce them. this is a trade. i would not invest my 401(k) in rimm -- >> haven't we already seen anticipation of this better than expected operating system that came out later but less late than expected in the stock over the past three months? >> but we've gotten more news,

actually just today. the fact that they expect to have 100,000 apps. that indicates that the product is going to have better acceptance than we might have expected. it means that developers are developing for it. this is a trade. it's not an investment. >> it seems like the trade -- i don't know, you guys. seems like -- put up a chart of rimm since september, right? >> i mean -- >> the early recruits of bb 10 remind me of the reviews of windows 8 mobile. and what happened when it came out, when the phones were actually released, the stock cratered. i think you can see the same thing. >> it's tough to buy here. i do like rimm. i think there's a huge opportunity with their software that nobody's talking about, it's in every single gps. in every single car. if the company could monetize that, they could actually have quite a little company here. >> all right, time now for pops and drops. the big movers of the day. you might have missed a drop for jcpenney. >> down 2%, not that big of a move for a stock that's had

amazing run and is failing at the 50-day. here's the move. if this stock had about been essentially in assent this high, the stock could have taken a bigger move. but the operational issues are still big. stay sale. >> big pop for pulte. >> when you are talking about the fiscal cliff and everybody's talking about that, you look at the home builders, the financials, those are the areas that reacted most to the boehner news today, this is just being carried along. i think there are better ways to participate in the move to the upside. >> caribou coffee, big pop. 30%. >> they agreed to beic thatt thatten -- being taken private. i think there are large shareholders that believe the value that could be higher. the story could keep on going a little bit here. >> pop for aig, beekers. >> they're going to sell aia, they're going to get a couple billion dollars for it in hong kong. this name's okay to me. i think a lot of the news is out

there. a lot of people have gotten into this. i'd use this opportunity to take profit on it. >> hpg, sco hpq, scott nations. >> today, deutsche bank said that's extremely unlikely and if the company was broken up, that would be a negative. >> and we have a pop here for "the hobbit." a movie filled with little people had a big weekend. >> what? >> can we say that? >> the first film in "the hobbit" trilogy which acts as a prequel to "lord of the rings." the highest december weekend gross taking in nearly $85 million. the movie has been accompanied by a number of bizarre promotions including a hobbit menu at denny's and legal hobbit currency in new zealand. >> how many times did you go, pete? >> to the movie or to denny's? >> what's on the menu? >> eggs in the hole.

>> really? >> say what? >> little people? >> what they eat in new zealand. coming up next, the copper trade as we know it could seem to be in for a big makeover. tell you about what's stirring up a lot of controversy. and later on, it's a fiscal cliff consequence that might fall into your backyard. literally. see how it could create a big headache for housing in 2013. [ male announcer ] this is amy. amy likes to invest in the market. she also likes to ride her bike. she knows the potential for making or losing money can pop up anytime. that's why she trades with the leader in mobile trading. so she's always ready to take action, no matter how wily...

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just like you. well, if itmr. margin?margin. don't be modest, bob. you found a better way to pack a bowling ball. that was ups. and who called ups? you did, bob. i just asked a question. it takes a long time to pack a bowling ball. the last guy pitched more ball packers. but you... you consulted ups. you found a better way. that's logistics. that's margin. find out what else ups knows. i'll do that. you're on a roll. that's funny. i wasn't being funny, bob. i know.

welcome back to "fast money." we are live in times square. sometimes it's tough to buy the losers and sell the winners, so, let's place a little hold 'em or fold 'em. first, holly frontier. 103% from a year ago. b.k.? >> all the retiners here, particularly the one in the mid continent have done very, very well this year. i still think there's probably more to go on this, though it is getting a bit expensive, relative to itself. i would much rather just buy oil here but i still think the crack spreads will be fine. >> is that ohold or fold? >> hold. >> wasn't clear to me.

>> i wasn't clear, was i? >> way to button that up, tim. >> next up, your turn now. heinz jumped 40% over the last three years. >> i would hold this stock, melissa. >> nice. out of the gate. >> fantastic dividend yield. we had bill johnson of heinz on "trade in the globe" on friday night and he pointed out, these games are in emerging markets and winning the war and they are definitely a global brand. they are growing faster at 16 times earnings, it's not cheap relative to itself. but that dividend yield is very impressive and these guys are grow egg. another name in the space that i like, because it's 100% international, mondaleese. our friend. >> we've been all over that story. we may have broken it. look it up. the s.e.c. has given its blessing to an etf that stock piles copper. jpmorgan's final hurdle to list the copper fund which critics say will distort the copper

market. look what happened to gold after the gld etf. silver prices have risen 180%. will the same thing happen to copper prices? let's bring in dennis gartman. dennis, great to see you. >> good to be seen, always. >> obviously, a lot will depend on the demand for such an etf. but jpmorgan filed to hold 62,000 tons. eye shares, awaiting its approval on its copper-backed etf in december. they are proposing to hold 121,000 tons and if you tally those up, that would be 70% of the current copper stocks in lme-bonded warehouses. do you think this will have an impact on the copper trade? >> if they take that much off and keep it off the market, well, you know, of course it will have an impact upon prices, of course it will tighten things up. it will probably take the market

from and all things being equal, it will probably send prices higher. what's really important for copper, however, is not a new etf. it's economic growth or economic nongrowth, whatever you get. and what's important to me is, take a look, it's not just copper that's been strengthening, nickel's been strength strengthening, tin has been. the real base metals have been firming up really appreciably. if you start to push copper up to 370 on the comex, you break to the upside, i liked copper two months ago. i stood aside. but if you break up through 370, you break down trend lines and the fact the other base metals are moving higher. but the advent of new etfs, going to bring the prices up. >> you think that some invent y inventories will be taken off the market. it's not the purest copper play and people might be seeking another proxy and jpmorgan may be coming along at the right time. >> well, i don't look at the etfs and i'm not going to look

at fcx as a pure play in copper if i'm going to play copper, i'm going to play copper futures. when i trade copper, i trade copper futures. wonderfully liquid market. i'd rather be there. but for the public, the etf is going to suffice or serve their purpose very, very well. >> hey, godfather, it's b.k. >> beeks! >> the folks at home, if they want to look for one indicator or copper to say, hey, it's really impacting the copper market, what do you sug jegest y look at? >> look at the term structure. i look at the futures probably more than anything. look and see if the front months are gaining on the back months. when you watch that, on down days, are the front months still gaining upon the back months? that's the best example. that's the best, to me, that's the best indicator of almost any market whether it's cotton, copper, crude oil. watch what the term structures are telling you. they tell you when real users of

a commodity are saying to that commodity, come out of storage, i need you. >> all right, dennis, always good to speak with you. dennis gartman of "the gartman letter." dennis makes a good point, but for people at home, that's not always the way to go. >> you need is sentiment to see people piling in, looking for that copper etf play. i totally agree with your call on fcx. something that's less of a fupu play. i'd play the diversified miners. i like volley here, which has less copper exposure. volley told us they expect iron ore prices to be 130 to 140 next year, a couple percent higher than they are. all of these global mine earl r cheap. i would stay in this trade. it's worked. coming up next, how housing is being pushed to the edge of the fiscal cliff.

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but i am your rmarket data. i know what you're looking for. i'm not chained to your desk anymore. i'm faster and smarter now. and so much less expensive. i am your market data. and if i do say so myself, i have never looked better. superderivatives introduces dgx. data done differently. what the fed has done has worked in the real economy. what the fed has done has healed

the markets. and there's no reason at this point in time to think that the fed doing something with so much liquidity in the markets is going to have any kind of long-term negative effect, particularly once we get over this, you know, this disagreement that's going on in d.c. >> that was david tepper saying fed policies have work and will continue to work after fiscal cliff deal is reached, but the question is, will we get a resolution before the deadline, just 14 days away and counting? eamon javers has the latest on the negotiations. eamon? >> hi, melissa. a couple of new tea leaves to read today. the first one was senate majority leader harry reid telling his fellow colleagues that they should be prepared to come back to washington on december 26th, to deal with, among other things, a solution to the fiscal cliff crisis. that implies that they might not get the votes before christmas but might have in mind a session before new year's eve to get

this all resolved. the other tea leaf that we got was speaker john boehner, who went to the white house today, met with treasury secretary geithner and president obama. he didn't answer any reporters questions, as you can see him returning right here. but we do know that the speaker has now put on the table raising the top rates for those people who make more than $1 million a year. now, that's a concession in terms of raising rates that the speaker had not been willing to offer before. so, clearly, melissa, there's some progress in these behind the scenes negotiations. what we don't know is where this thing is going to end up. the speaker said in his latest public offer he's willing to go about as high as $1 trillion in new tax revenue. the president has said that he wants $1.4 trillion, so, there's still some distance between the two of them. now tomorrow, the members of congress are going to be back in town and watch very carefully to see if speaker boehner can hold his coalition together among republicans on capitol hill or how many of those folks express

disapproval of this deal. guys? >> eamon, thank you. let's talk more about the cliff's potential impact on housing, a sector that shined also one of the bright spots in a slow economic recovery. joinings now is bob weedenhall, home building analyst. bob, great to see you. if you took a look at the home building stocks today, which i'm sure you did, they seem to be acting as if there was a deal on the way and not just that, but the mortgage interest deduction may be largely intact. what sort of tea leaves are you reading out of d.c. at this point? >> our general view is, there has to be some kind of deal. the deduckability of interest expense on a mortgage enhances home affordability. right now, we're at a million dollar threshold. can we flesh down to 750? conceivably, in some kind of deal. you go below $500,000, however, and you start to impact the pace and trajectory of the recovery. it will undermine the progress we made year to date in terms of getting the housing market back on track. >> the mortgage debt that is eligible right now is $1 million.

when you talk about going down to 750 you wa, walk us through it will impact a homeowner's ability to take out a loan and what price point in housing we're talking about. >> so, what we're really talking about right now is that the more expensive homes are above $1 million, that's when there's a cutoff. if you go below 750, all of a sudden, you are taking a whole new class of homeowners and making it more expensive for that group, between 750 and 1 million, their cost of home ownership goes up. what we want to protect is the ability of the incremental buyer to come in and eat up excess supply. we flex below 500, most of the publicly listed home builders are more targeted towards 250,000, but they also flex upwards, too, and have offerings in the $500,000 range. >> i don't know if you've done sort of the back of the envelope

calculation, but you mentioned while their core focus might be the sort of lower end home but they flex upwards, if you remove that, even a certain percentage of that, how does that -- >> you can't gauge the impact. the biggest exposure is eliminate the deduction. that's affecting both new buyers and existing homeowners. so, everybody's exposed who is a home owner, if we change the tax code and the policy in this fashion. our general view is, you can't allow this to happen, because you're derail the housing recovery which has grave con consequences for the broader company. so, we don't think this is something, home deductibility of interest expense, popular on both sides of the aisle. i think bernanke will make sure geithner and obama and boehner make a big effort to preserve it. >> we've had brokers retail secondary market real estate brokers on the show talking about how they've actually seen demand in the last couple months as a result of the fiscal cliff. so, people are front running it, people are getting involved in the housing market, they are

taking advantage of -- >> low rates. >> and an opportunity to do this before taxes change. i would make an argument with the fed effectively acting with monetary policy to take the place of what congress is not doing, what the president is not doing, low rates by the fed are keeping the housing market in a place where i think you're going to start to get bubblelicious again. they are not earning yields anywhere else. to me, this is really what's driving the market. i'm just curious your view. >> you're absolutely right. so, low interest rates, tight inventory levels, supply has contracted. gone from 21 months down to 14. and we have price stability, if you look at kay schiller, that's gone flat. was down, now we're flat. i'm not sure we're frothy yet. we want to be restrained in our enthusiasm, but we are very bullish on home builder equities. we see upseed in 2013.

>> your top pick is one that will benefit from home building boom but also a renovation boom that's going on right now. >> you think increased consumer confidence will lead to the release of pent up consumer demand. we have a bullish call on u.s. gypsum. benefits from favorable wallboard prices could rise by as much as 20% in 2013, in response to tighter demand conditions for wallboard from home builders. we see 10% buy-in growth due to increased new residential construction activity. stock is around 26 bucks. we have a $35 price target. big move today. >> and the allegations about price fixing are -- a concern? >> after reviewing what's been put out in the public market is they're unfounded. so, we still like our call. >> bob, good to see you. thank you for copping by. >> thank you very much. let's stick with housing. scott, you saw unusual activity today? >> that's right. bob mentioned that home builders have had a great year and one option trader thinks they're going to continue to do well,

so, xhb, we saw somebody buy 1,000 of the january $27 calls that today 37 cents for those. options in this name got really expensive today, so, this is a committed call buyer who thinks that xhb is going to be at least up at $27.37 at that january expiration. given they paid up, they think it's fog to be substantially higher. >> is it safe to fly along with this trade? we'll take your tweets and get some answers when we come back. stay tuned. [ male announcer ] the markets keep moving. make sure the news keeps coming with thinkorswim by td ameritrade. use the news links breaking stories with possible breakout stocks, options with potential opportunity, futures and forex with in-depth analysis. it's an all-you-can-eat buffet for all things trading.

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there you have it. time for the good, the bad and the ugly with pete najarian. first, the good. since september, pete has been bullish on the coal space. take a listen. >> i'm sticking with water energy. when i look at what's going on in the infrastructure plans announced in china, gave a lot of these different nails a nice boost. in the coal space, iron ore

space, steel, you're seeing a lot of green numbers right now to the upside. >> the coal etf up 8% since pete's call back in september. so, what do you do here, pete, in terms of walter, more specifically? >> i'm out of walter now, but i'm in cliffs and anr. i think the coal space, i was just looking for more bang for my buck. when you start to avoid of the chatter about potential takeovers and the rest of that, i think that changes things up a little bit. i still like the coal space, based mostly on china right now. >> now to the bad. in october, pete was talking about a different kind of energy, when he made a bullish call on petra. here's what he said. >> i think there was some great opportunities. you talk about the renours names. right in your backyard, pet petrobras. i tried to buy the options, i tried to buy the stock. i got a hit on my options, so, i got into that stock. >> really distracted by that

shirt-tie combination. >> that was the ugly, first of all. >> that's fine. that's fine. pete didn't know. >> good cause, ugly combination. >> combination was a little bit colorful. >> pbr down. >> awful call on that one. and i still own some of the upside calls in there, so, barring a miracle, those are going to go out worthless. but i still like the name. i liked what i saw. i took a shot. didn't work. >> we're long it now and you tried to draw me into that trade in the video. i held out and i bought it a couple weeks ago. >> because of that shirt and tie. >> but this stock's been trading fantastic for the last couple of weeks. >> the shirt threw him off. >> it didn't match. you're color blind, given. >> i got cameras everywhere, i'm looking left, facing right. >> that is a tough combo. >> let's so what was hot in the tw twitter-sphere. here's a hint. you may need to buckle up.

>> good hint. airline stocks are up tonight. delta, u.s. air, united up, writing that there are numerous reasons to own these shares, including higher passenger rev nufs and not to mention lower fuel costs. now, in response, the airline index hit its highest level since june of 2011. the big question on twitter, is this the time to get in on the airline trade and if so, what's the best pick? mighty fine tweets, if you sold coals and airlines this morning, give yourself a pat on the back. and greg tweets, the airline index is about to take off. he's eyeing southwest and hawaiian holdings. and quant is looking at southwest. so, a lot of airline names being thrown out there. fundamentals seem to be improving for 2013. what's the best pick, i guess? >> mighty fine. isn't that clever?

airlines, beeks. >> i agree, that airlines have had a good run. i would go more with the hotel stocks. i like marriott, starwood, if you fly somewhere, you have to stay somewhere. i like the names. >> thank you so much for that. coming up next, nothing but pain this year for the yen, but do you dare to buy it right now? we have a trader that's ready to make a bold call, right after this break. let's give thanks -

for an idea. a grand idea called america. the idea that if you work hard, if you have a dream, if you work with your neighbors... you can do most anything. this led to other ideas like liberty and rock 'n' roll. to free markets, free enterprise, and free refills. it put a man on the moon and a phone in your pocket. our country's gone through a lot over the centuries and a half. but this idea isn't fragile. when times get tough, it rallies us as one. every day, more people believe in the american idea and when they do, the dream comes true. we're grateful to be a part of it.

welcome back to "fast money." the japanese yen fell today to its lowest level in 20 months against the u.s. dollar. the move coming on the heels of a victory by the japanese liberal democratic party. with more, let's bring in emilia bordeaux. when you hear stimulus and further easing, you think of a weakened currency. what do you do here? >> that's true. well, not only did the ldp party win the election, they won what's called a super majority. that means they can really set a legislative agenda in the lower house going forward and the market didn't necessarily expect that. so, it is pretty dubbish for the

currency. so, i would like to actually go long on dollar yen. i know this is a crowded trade, but i think a lot of people still like it. i think we can have another run higher, you know, into the end of the year and the start of next year. so, i'm waiting for 45 pull-back, about, to $83.40, where it entered the trade. i'm looking for a run up to $86 as a figure and put a stop-down at $82.50. >> amelia bordeau, thank you. here's one way to play the housing recovery. shares of tronox, a maker of tie tame one oxide, could double in the next year. this name has been on our radar, actually, tim's radar, for some time now. >> sure. >> here's what he said last month. >> this is definitely a stock which is linked to global recovery. linked to housing recovery, especially in this country. it trades at four times earnings. you don't need to buy it today,

but it's ridiculously cheap to its history. if you believe in housing, this is a stock you want to look at. >> and it's a housing play, because they make the pigments that go into the paints. >> into the paints. >> exactly. >> we're seeing demand from here, china and other places where it is not as -- it's kind of a second or a third derivative down the line. this is a stock that is ridiculously cheap. there are a couple of people out today talked about it. baron's made a note on it, but a couple of portfolio managers who have been pushing very hard. the street, i think, has been slow to follow. i think you're going to see people follow through on this. this is a stock that was knocked out of bed on two different twarnings, each time, it fell down 15%. people are pushing this thing and i think a lot of shorts are still bottled up in here. >> there's a deal last week with ppg, sherwin-williams has been on a deal. in terms of this part of the housing recovery place, it's been on fire. >> yeah, but i think actually at this point in the cycle i would much rather own this than a sherwin-williams. they've been a rocket ship. how many rooms can you paint? but in this particular case --

>> or, how where shirts can you paint? i mean, pink, pink. >> spill. >> sorry. >> anyways, i'd much rather own this. >> okay. coming up next hour on "mad money," is imtime to buy into one boat play? cramer hits the high seas. plus, he's going to respond to your tweets @jimcramer. so, stick around, it's all coming up, top of the hour. meantime, don't go anywhere. first move tomorrow when we come back. stick around. tdd#: 1-800-345-2550 let's talk about low-cost investing.

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